China | Private Investment Slowdown Marks the Start of China’s Long-awaited Deleveraging

Summary

China’s fixed asset investment (FAI) has significantly decelerated through May, in particular the private FAI. The private FAI slowdown is concentrated in the sectors with overcapacity and low profit growth; moreover, it is likely to usher in China’s deleveraging, which is imperative for the debt-laden corporate sector to restore its financial health.

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